"THE ACTION UKRAINE REPORT"
A Global Newsletter
In-Depth Ukrainian News, Analysis, and Commentary
"The Art of Ukrainian History, Culture, Arts, Business, Religion,
Sports, Government, and Politics, in Ukraine and Around the World"
RUSSIA FIRES SHOT AT WEST OVER UKRAINE
Putin issues stern warning to the West not to get in the way
West Trying to Compromise Integration of Russia and Ukraine
UKRAINE SUDDENLY CHANGES DIRECTION
Kuchma proposes withdrawal of priority for EU and NATO membership
Serious step back from Western organizations
"THE ACTION UKRAINE REPORT" Year 04, Number 125
Action Ukraine Coalition (AUC), Washington, D.C.
Ukrainian Federation of America (UFA), Huntingdon Valley, PA
morganw@patriot.net, ArtUkraine.com@starpower.net (ARTUIS)
Washington, D.C.; Kyiv, Ukraine, TUESDAY, July 27, 2004
-----INDEX OF ARTICLES-----
"Major International News Headlines and Articles"
1.RUSSIAN PRESIDENT PUTIN SAYS WESTERN SPIES TRYING
TO HURT RUSSIA-UKRAINE RELATIONS
West trying to compromise the integration of Russia and Ukraine
AP Worldstream, Yalta, Crimea, Ukraine, Monday, July 26, 2004
2. PUTIN ISSUES STERN WARNING TO WEST NOT TO GET IN
THE WAY OF RUSSIA AND UKRAINE FORGING CLOSER TIES
By Valeria Korchagina, Staff Writer, The Moscow Times
Moscow, Russia, Tuesday, July 27, 2004. Page 1
3. UKRAINE'S PRESIDENT WANTS TO DROP GOALS OF NATO
AND EU MEMBERSHIP FROM NATION'S DEFENSE DOCTRINE
Change would be serious step back from Western organizations
Aleksandar Vasovic, AP Worldstream, Kiev, Ukraine, Jul 26, 2004
4.UKRAINIAN & RUSSIAN PRESIDENTS STATE FIRST PRIORITY
IS TO DEEPEN TRADE AND ECONOMIC COOPERATION
UT1, State TV Channel, Kiev, Ukraine, in Ukrainian, 26 Jul 04
BBC Monitoring Service, UK, in English, Monday, Jul 26, 2004
5. PUTIN WANTS MORE JOINT BUSINESS PROJECTS BETWEEN
RUSSIAN AND UKRAINIAN BUSINESSMEN
"We intend to give practical and organizational support to joint projects."
RTR Russia TV, Moscow, Russia, in Russian, 26 Jul 04
BBC Monitoring Service, UK, in English, Monday, Jul 26, 2004
6. HUGE RUSSIAN AND UKRAINIAN BUSINESSES VOICE
GRIEVANCES AGAINST EACH OTHER
LUK Oil, Gazprom, Alfa Bank, Interpipe, PrivatBank, Donbass Union
Correspondent Nataliya Safykhanova reports from Yalta
Black Sea TV, Simferopol, in Russian, 26 Jul 04
BBC Monitoring Service, UK, in English, Monday, Jul 26, 2004
7. UKRAINE SAYS PIPELINE TO BE FILLED WITH RUSSIAN OIL
Filling of Odessa-Brody oil pipeline will begin on August 1
Interfax-Ukraine news agency, Kiev, Ukraine, in Russian, 26 Jul 04
BBC Monitoring Service, UK, Monday,, Jul 26, 2004
8. IMF MISSION REPORTEDLY WORRIED ABOUT
UKRAINIAN PRIVATIZATION POLICIES
Level of transparency of the privatization procedure questioned
UNIAN news agency, Kiev, Ukraine, in Ukrainian, 26 Jul 04
BBC Monitoring Service, UK, Monday, Jul 26, 2004
9.U.S. AMBASSADORS STEPHEN PIFER AND CARLOS PASCUAL
LETTER-TO-THE-EDITOR: by Stuart Ferency
The Action Ukraine Report, Washington, D.C., Monday, July 26, 2004
10. VIKTOR YUSHCHENKO: "THE UKRAINE CREATED BY THE
SITTING GOVERNMENT---THIS IS NOT MY UKRAINE"
We are talking about two different choices, two different Ukraines
Press service of Victor Yushchenko's central headquarters
Kyiv, Ukraine, Monday, July 26, 2004
11. IRISH LEADER QUESTIONS IMPORT OF UKRAINIAN GRAIN
Grain is not quality assured, no idea what chemical may have been used
Politics.ie., The Irish Politics Website, Belfast, Ireland, July 22, 2004
12. UKRAINE'S FOOD PROCESSING INDUSTRY: LARGE
INCREASE IN OUTPUT DURING FIRST SIX MONTHS OF 2004
AgriMarket.Info, APK-Inform Information Agency, www.agrimarket.info
Dnipropetrovsk, Ukraine, Monday, July 26, 2004
13. THOUSANDS OF NON-HATCHED BABY BIRDS DIE IN
DANUBE DELTA BECAUSE OF UKRAINE'S DANUBE-BLACK
SEA CANAL CONSTRUCTION, ECOLOGISTS SAY
Antonina Levko, Ukrainian News, Kyiv, Ukraine, Mon, July 26, 2004
14. PRESIDENTIAL ADMINISTRATION SEES NO REASON TO
CONSIDER ABOLISHING OR SUSPENDING CONSTRUCTION
OF DANUBE-BLACK SEA CANAL
Oleksandr Sukov, Ukrainian News, Kyiv, Ukraine, July 23, 2004
15.POLISH DIRECT INVESTMENT IN UKRAINE AND RUSSIA SOARS
Over $100M last year, up three to four times on the previous year
Polish News Bulletin, Warsaw, Poland, Friday, Jul 23, 2004
16. PRESIDENT BUSH GREETING FOR SHEVCHENKO TRIBUTE
40th anniversary commemoration of the Taras Shevchenko monument
Saturday, June 26, 2004, Washington, D.C.
Message from President George Bush
The White House, Washington, D.C.
To the Organizing Committee: Taras Shevchenko Monument
40th Anniversary Commemoration, Washington, D.C. June, 2004
17. WHAT'S THE DEAL? "FOOTSTEPS OF THE COSSACKS"
The week's best travel bargains around the globe, by land, sea and air
Cruise along Ukraine's Dnieper River from Kyiv to the Black Sea
By Carol Sottili, TRAVEL section, The Washington Post
Washington, D.C., Sunday, July 25, 2004; Page P03
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER ONE
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1. RUSSIAN PRESIDENT PUTIN SAYS WESTERN SPIES TRYING
TO HURT RUSSIA-UKRAINE RELATIONS
West trying to compromise the integration of Russia and Ukraine
AP Worldstream, Yalta, Crimea, Ukraine, Monday, July 26, 2004
YALTA - Russian President Vladimir Putin on Monday accused Western
intelligence agencies of trying to hamper efforts by Russia and Ukraine to
forge closer relations. "By joining forces we raise our competitiveness, and
... our partners abroad understand this perfectly," Putin said during his
latest visit to Ukraine, the second-largest former Soviet republic by
population and an object of Putin's efforts to restore Moscow's clout among
its neighbors.
"That's precisely why their agents _ both inside our countries and from
outside _ are in fact trying in various ways trying to compromise the
integration of Russia and Ukraine," Putin said in televised comments to
businessmen from both countries after meeting with Ukrainian President
Leonid Kuchma in the Crimean resort city of Yalta.
Putin has successfully pushed for an economic alliance with Ukraine, Belarus
and Kazakhstan, though it is in a fledgling stage. He has repeatedly said
relations with the former Soviet republics are of paramount importance, and
has in particular sought close ties with Ukraine, visiting the country
several times this year.
At the same time, the Interfax news agency quoted Putin as saying Russia and
Ukraine "should not stand in opposition to the West. We are objectively part
of the world economic system."
Ukraine has sought closer relations with the United States and the European
Union since it gained independence in the Soviet collapse of 1991, but
Kuchma has expressed frustration with the pace of integration with the West,
and the nation of 48 million has also maintained tight ties with Russia.
Kuchma wants to change in Ukraine's defense doctrine to remove a statement
saying that it seeks membership in NATO and the European Union, according
to a decree posted on his Web site Monday. Russia has tone down its
opposition to NATO's eastward expansion, but Ukrainian membership would
be a slap in the face.
In Yalta, Putin offered what could be valuable praise for Ukrainian Prime
Minister Viktor Yanukovych, who is running in the Oct. 31 presidential
election, saying he and Kuchma deserve much credit for Ukraine's recent
economic growth.
Yanukovych is seen as friendly with Russia, while top opposition candidate
Viktor Yushchenko _ a staunch advocate of integration with the EU and
NATO _ is trying to fight off claims that he would hurt relations with
Russia.
Putin talked up Russian-Ukrainian ties, saying bilateral agreements will
"lay the foundation" of the Single Economic Space, the fledgling trade group
the two countries have formed along with Kazakhstan and Belarus, Russian
media reported.
He also said Russian-Ukrainian trade had increased by some 40 percent in
the first five months of 2004 over the same period last year, reaching US$6
billion.
Meanwhile, according to Russia's ITAR-Tass news agency, officials said oil
will soon begin flowing into a pipeline that Ukraine has decided at least
for now will be used to pump Russian crude instead of to transport Caspian
Sea oil toward Europe _ a reversal that the United States criticized.
Also, Russia's gas monopoly Gazprom said that Russia and Ukraine plan to
sign an agreement soon governing supplies of natural gas to Ukraine for the
next decade or more, news agencies reported.
Putin even suggested closer cooperation between the two neighbors in sports,
saying the countries could improve their level of play and attract audiences
by organizing Russian-Ukrainian championships in soccer and ice hockey,
ITAR-Tass reported. (sbg) (END) (ARTUIS)
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER TWO
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2. PUTIN ISSUES STERN WARNING TO WEST NOT TO GET IN
THE WAY OF RUSSIA AND UKRAINE FORGING CLOSER TIES
By Valeria Korchagina, Staff Writer, The Moscow Times
Moscow, Russia, Tuesday, July 27, 2004. Page 1
YALTA - President Vladimir Putin on Monday issued a stern warning to the
West not to get in the way of Russia and Ukraine forging closer ties. "By
getting closer we increase our competitiveness. And this is understood not
only by us but by serious people, our partners abroad," Putin said after
meeting with Ukrainian President Leonid Kuchma in Yalta, a Ukrainian resort
in the Crimea, Interfax reported.
"Their agents, both inside our countries and outside, are trying everything
possible to compromise the integration between Russia and Ukraine," Putin
said, speaking to businessmen from both countries.
At the same time, Putin on Monday emphasized that Russia and Ukraine
should not put themselves into opposition to the West. "We objectively are
part of the world economic system," he said.
The meeting in Yalta, which covered a range of issues, took place three
months before Ukraine is to elect a new president. Kuchma is likely eager
for as much support from Russia as possible as he attempts to put his chosen
heir, Prime Minister Viktor Yanukovych, in a position to win on Oct. 31.
Among the offerings bound to please Putin, Kuchma, who over the years has
shown a willingness to ignore Russia's interests in pursuing closer
integration with the West, said Monday that Ukraine should no longer strive
to join the European Union and NATO, but only to "deepen relations" with
the two organizations.
In a decree signed July 15 and posted on his web site Monday, Kuchma said
Ukraine's defense doctrine should be changed to reflect this. Kuchma had
just signed a new defense doctrine in June that stated the aim of joining
NATO and the EU. Changing the doctrine would require parliamentary
approval.
Kuchma has long sought closer ties to the West, and his change of tone
likely reflects frustration at the slow pace of integration with the West as
well as a new desire to draw closer to Russia.
Putin on Monday called for Ukraine and Russia to come up with a joint
strategy for joining the World Trade Organization and also to speed up their
own economic integration through what is being called the Unified Economic
Space. Russia is creating the economic alliance with Ukraine, Belarus and
Kazakhstan, though it is in its early stages.
The leaders of most former Soviet republics have been wrestling with finding
a way to combine economic integration within the former Soviet Union with
their country's independent efforts to join the WTO.
Putin said that up to 62 agreements among the four countries that are to
form the Unified Economic Space are to be ready for signing at the end of
the year. With Ukraine, he said, a range of agreements is to be prepared
even sooner.
Although Putin was not specific about when the agreements with Ukraine
will be ready, it is likely Russia will push for them to be signed before
the Oct. 31 vote, since any new president of Ukraine could well decide
that the new warmer relations could stand a slight dip in temperature.
Sergei Karaganov, head of the Council on Foreign and Defense Policy, said
Kuchma's decree on the national defense doctrine could well end up a
temporary measure. "The next president, by signing another decree, could
change the doctrine and restore to it ... Ukraine's striving to join NATO
and the EU," he said on Ekho Moskvy radio on Monday. Karaganov added
that Kuchma's decree is unlikely to change the general slant of the
Ukrainian elite toward NATO and the EU.
There are 10 candidates in the race to succeed Kuchma. Among the favorites
is the pro-Western Viktor Yushchenko, Kuchma's bitter opponent. Another
strong candidate is Communist Party leader Petro Symonenko. Kuchma's
team, as well as a number of Russian political consultants operating in
Ukraine in the run-up to the vote, are placing their bets on Yanukovych.
The polls show all three with significant support and the election too close
to call.
Putin appeared ready Monday to use the window of opportunity opened
by the presidential race to its fullest. His delegation, including not only
government and presidential administration officials but some of Russia's
most prominent business leaders, appeared to be striking deals left and
right.
Among the newly agreed deals was the decision to start using Ukraine's
Odessa-Brody oil pipeline, which stood empty for three years as the two
countries argued over which direction the oil in it should flow. The United
States has been pushing for Ukraine not to allow Russia to export oil by
pumping it from Brody to the Black Sea port of Odessa, saying that an
increase in oil shipments through the Bosporus will further clog the strait
as well as make Ukraine more dependent on energy resources from Russia.
Ukrtransnafta officials said Monday that the pipeline will be filled as of
Sunday. Earlier reports indicated that TNK-BP will use it and plans to
transport up to 1.4 million tons of crude through the pipeline per year.
Putin also seized a chance to dress down the Ukrainian side for not giving
Russia its due.
When the honorary president of the Ukrainian Dinamo soccer club, Grigory
Surkis, suggested that Russia should replace Poland in what used to be a
joint Ukrainian-Polish bid to host the European Championship in 2012, Putin
said: "We will not be the second choice after Poland or any other country,"
he said. "If they [Ukrainians] want to cooperate, make a relevant proposal.
... Russia will most likely look at it and possibly make a positive
decision." He added, however, that neither Russia nor Ukraine was ready
to make such bid. (END) (ARTUIS)
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER THREE
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3. UKRAINE'S PRESIDENT KUCHMA WANTS TO DROP GOALS OF
NATO AND EU MEMBERSHIP FROM NATION'S DEFENSE DOCTRINE
Change would be serious step back from Western organizations
Aleksandar Vasovic, AP Worldstream, Kiev, Ukraine, Jul 26, 2004
KIEV - President Leonid Kuchma wants to drop wording affirming Ukraine's
goal of joining NATO and the European Union from the nation's defense
doctrine, according to a decree on his Web site Monday. The change would
be serious step back from the Western organizations for former Soviet
republic.
In the decree, signed July 15, Kuchma said the portion of the doctrine
stipulating that Ukraine's ultimate goal is to join NATO and the EU should
be replaced.
The suggested edit of the defense doctrine omits a line that states
Ukraine's readiness "to become a full-fledged member of these
organizations." Kuchma had just signed a new defense doctrine in June
that embraced the aim of joining the Western organizations.
His new proposal does say that it is in Ukraine's national security
interests "to deepen relations with NATO and the EU as guarantors of
security and stability in Europe," and it calls serious military reforms
aimed to boost integration with those organizations a major priority.
But the plan to abandon the reference to membership appeared to reflect
frustration with Western organizations and governments, which have told
his government it must improve its record on democracy if it wants to
become a partner.
As the EU and NATO have expanded eastward, they have given Ukraine's
leaders little indication of when it could hope to join. Ukraine, meanwhile,
has drawn closer to Russia, forging an economic alliance with its huge
neighbor and two other former Soviet republics.
Kuchma's decree was called "On the further development of relations with
NATO, taking into account the outcome of the Ukraine-NATO meeting at
the top level" _ a reference to a meeting during a NATO summit in Istanbul
last month at which Kuchma and NATO Secretary-General Jaap de Hoop
Scheffer acknowledged that Ukraine is not ready to join the alliance soon.
To be adopted, Kuchma's proposal must be considered by a parliamentary
commission on security and by the government, as well as being approved
by the parliament.
A NATO spokesman in Brussels, Robert Pszczel, said Ukraine had not
officially informed the alliance of the decree. "We are very happy with the
state of relations with Ukraine. We had very good meeting in Istanbul and
we had agreed on good action plan," he said, adding that all nations must
determine their own foreign policies.
In April, NATO warned Ukraine to make progress in democracy and human
rights, implement comprehensive military reforms and ensure the country's
Oct. 31 presidential election _ whose conduct is seen as crucial to he
country's stated aspirations of joining NATO and the EU _ is free and fair.
Since the Soviet collapse of 1991, Ukraine has sought to improve relations
with the West. It has deployed troops to serve in the NATO-led
peacekeeping mission in Kosovo, and sent a large contingent to Iraq as part
of the U.S.-led coalition.
Ukraine also has joined NATO's Partnership for Peace program, and earlier
this year it granted NATO the right of free passage across its territory and
the use of its transport aviation.
But Kiev has juggled its hopes of joining NATO and the EU with its close
historical and economic ties to Russia and Moscow's eagerness to maintain
influence in the France-sized nation of 48 million. (av/am/sbg) (END)
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER FOUR
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4.UKRAINIAN AND RUSSIAN PRESIDENT STATE FIRST PRIORITY
IS TO DEEPEN TRADE AND ECONOMIC COOPERATION
UT1, State TV Channel, Kiev, Ukraine, in Ukrainian, 26 Jul 04
BBC Monitoring Service, UK, in English, Monday, Jul 26, 2004
KIEV - [Presenter] Today in the Livadiya Palace in Yalta there was a
face-to-face meeting between the presidents of Ukraine and Russia, the
main topic of which was prospects for deepening trade and economic
cooperation. Immediately after the meeting the two heads of state attended
a Ukrainian-Russian business forum.
[Ukrainian President] Leonid Kuchma expressed the opinion that the priority
for the economic relations of our country with Russia is the formation of a
real free-trade zone without exemptions and restrictions.
In their discussion, Vladimir Putin spoke of Russia's intention as soon as
possible to reach an economic agreement with Ukraine that could serve as
the basis for the creation of the Single Economic Space [also to include
Belarus and Kazakhstan]. For his part the president of Ukraine said that
the first decisions to take practical steps to realize the potential of the
Single Economic Space will be taken in Astana in September.
[KUCHMA, in Russian] We have the colossal potential of the four countries
in the Single Economic Space. I've said somewhere before that you only
need look at a map. The geographical [map] in terms of territory, and in
particular the geological, and even more so in terms of human potential.
Simply look at all the others [countries]. We have colossal potential, and
this potential must be used intelligently, based on new principles.
[PUTIN, in Russian] There might be administrative barriers, problems,
certificates and so on and so forth, and we propose to deal with all of this
within the framework of the very Single Economic Space, which has no
political goals and no other goals either, expect for this - to get rid of
everything that you spoke of today, such as the problems that hinder
cooperation and hinder economic development and eventually the
development of our countries and the improvement of the standard of
living of our citizens. [Video shows Livadiya, presidents meeting,
addressing reporters] (END) (ARTUIS)
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ACTION UKRAINE REPORT-04, No. 125: ARTICLE NUMBER FIVE
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========================================================
5. PUTIN WANTS MORE JOINT BUSINESS PROJECTS BETWEEN
RUSSIAN AND UKRAINIAN BUSINESSMEN
"We intend to give practical and organizational support to joint projects."
RTR Russia TV, Moscow, Russia, in Russian, 26 Jul 04
BBC Monitoring Service, UK, in English, Monday, Jul 26, 2004
MOSCOW - [Presenter] We are going back to Yalta again. We have just
received a video report on the Russian and Ukrainian leaders' joint meeting
with representatives of the two countries' business circles. Ukrainian Prime
Minister Viktor Yanukovych is also taking part in the meeting.
Eight Russian businessmen are representing the domestic business at the
forum and from the Ukrainian side, twice as many businessmen are attending
the forum. The Russian president particularly stressed the importance of
cooperation between the two countries' business communities.
[Putin] It is precisely cooperation between the two countries' business
communities and your level of activity which in many respects determine the
practical richness of the Russian-Ukrainian trade and economic partnership.
I believe that private businesses' interests should certainly be taken into
consideration when key projects are drawn up as part of Russian-Ukrainian
economic cooperation. As a matter of fact, what do I mean by 'I believe'?
Virtually not a single major undertaking is carried out without this. And,
naturally, we intend to give practical and organizational support to joint
business projects in the future as well, above all, in spheres that are
important to us such as power engineering, the military-industrial complex,
aircraft construction, and as [Ukrainian President] Leonid Danylovych
[Kuchma] has already mentioned, space, transport infrastructure, metallurgy,
machine building and banking. Especially since the macroeconomic situation
in our countries is currently pretty favourable and the business climate is
gradually improving. (END) (ARTUIS)
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER SIX
Ukrainian Information Website: http://www.ArtUkraine.com
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6. HUGE RUSSIAN AND UKRAINIAN BUSINESSES VOICE
GRIEVANCES AGAINST EACH OTHER
LUK Oil, Gazprom, Alfa Bank, Interpipe, PrivatBank, Donbass Union
Correspondent Nataliya Safykhanova reports from Yalta
Black Sea TV, Simferopol, in Russian, 26 Jul 04
BBC Monitoring Service, UK, in English, Jul 26, 2004
SIMFEROPOL - [Presenter] Once again the Ukrainian and Russian presidents
have visited Crimea. [Ukrainian President Leonid] Kuchma and [Russian
President Vladimir] Putin met in Livadiya [palace in Yalta] today.
Representatives of the business circles of the two countries also attended
the meeting. The subjects under discussion were the usual - the development
of the Single Economic Space accord and cooperation between Ukraine and
Russia. Our correspondent Nataliya Safykhanova reports to us by phone from
Livadiya:
[Correspondent Nataliya Safykhanova] The presidents of Russia and Ukraine
are satisfied with cooperation progress. In the first five months of this
year the volume of trade between the two countries grew up by 30 per cent
and reached 6bn dollars. Both leaders believe that the main task now would
be to create a free trade zone.
After the parties exchanged polite words on progress in cooperation between
Russia and Ukraine, representatives of the business circles started to voice
grievances against each other. The Russians are dissatisfied with the
overall business climate in Ukraine, which they have described as rough. The
Ukrainians are not satisfied with the [Russian] customs regulations.
Russians want their investments in Ukraine, including Crimea, to be welcomed
with more joy.
For their part, Ukrainians have remembered the role Russia played in the
recent fuel crisis in Ukraine. Today Russia still sells its oil [to Ukraine]
at prices which are higher than in the world market. President Putin has
promised to sort this out.
[Passage omitted: more in the same vein; TV says directors of Russian oil
and gas giants LUKoil, Gazprom and Alfa bank and of Ukrainian
corporations Interpipe, PrivatBank and the Industrial Union of Donbass
attended the meeting] (END) (ARTUIS)
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER SEVEN
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7. UKRAINE SAYS PIPELINE TO BE FILLED WITH RUSSIAN OIL
Filling of Odessa-Brody oil pipeline will begin on August 1
Interfax-Ukraine news agency, Kiev, Ukraine, in Russian, 26 Jul 04
BBC Monitoring Service, UK, Monday, Jul 26, 2004
YALTA - The filling of the Odessa-Brody oil pipeline with oil will begin on
1 August, the board chairman of the Naftohaz Ukrayiny oil company, Yuriy
Boyko, has said. "The filling of the Odessa Brody oil pipeline will begin on
1 August, and it will work for the benefit of the economies of the two
countries," he said, speaking at a meeting of Ukrainian and Russian
businessmen in Yalta on Monday [26 July]. Boyko did not specify either the
direction of the oil transit or what type of oil it will be filled with.
The supervisory council of the Ukrtransnafta [Ukrainian oil transit company]
last week authorized the company's director-general to sign an agreement on
filling the Odessa-Brody oil pipeline and using it together with the
companies of the Russian-British TNK-BP oil company to transport 9m
tonnes of Russian oil a year for the next three years.
A draft agreement between Ukrtransnafta and TNK-BP on filling the pipeline
envisages that 9m tonnes of the Russian Urals oil will be transported from
Mozyr to Brody and then to the Pivdennyy international oil terminal [in
Odessa] for three years on the "pump or pay" conditions. The draft also
envisages a loan of 108m dollars to buy 450,000 tonnes of technical oil [to
fill the pipeline].
The Russian-British TNK-BP company is going to pump 1.3m-1.4m tonnes
of oil using the Odessa-Brody pipeline, the head of the TNK-BP-Ukraine,
Aleksandr Gorodetskiy, said. According to him, the amount of 9m tonnes
of oil a year, which was offered by TNK-BP-Ukraine, will be pumped by
several Russian companies, which will share it proportionally (TNK-BP will
pump 15 per cent of the total amount). Apart from TNK-BP, such oil
companies as Lukoil, Yukos, Sibneft and Slavneft said they were ready to
pump oil using the Odessa-Brody pipeline in reverse mode, Gorodetskiy
said.
[The Odessa-Brody pipeline was originally built to transport Caspian oil
from Odessa to Brody and then to Europe via Poland. On 4 February 2004
the Ukrainian government decided to use the pipeline in its original
direction, but on 5 July the Cabinet of Ministers amended its previous
resolution to make the reverse mode possible.] (END) (ARTUIS)
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER EIGHT
Ukrainian Information Website: http://www.ArtUkraine.com
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8. IMF MISSION REPORTEDLY WORRIED ABOUT
UKRAINIAN PRIVATIZATION POLICIES
Level of transparency of the privatization procedure questioned
UNIAN news agency, Kiev, Ukraine, in Ukrainian, 26 Jul 04
BBC Monitoring Service, UK, Monday, Jul 26, 2004
KIEV - IMF representatives are especially interested in real budget
indicators after changes to the law on the state budget were approved. The
situation is aggravated by Ukraine's policy of borrowing and privatization
in excess of the privatization plan, the head of the parliamentary Budget
Committee, Petro Poroshenko, said after a meeting with representatives from
the IMF European department, UNIAN learnt from the press service of the
Solidarity group within the [opposition] Our Ukraine faction.
"The participants in the meeting were interested in the justification for
such actions and the level of transparency of the Ukrainian privatization
procedure. They think that carrying out privatization on this scale during
parliament's holidays is a warning signal," the press service quoted
Poroshenko as saying.
At the meeting "it was suggested that the sale of companies for nothing
could lead to serious losses for the state budget". Poroshenko is confident
that this policy will not help raise Ukraine's authority in the world and
will damage its image. [Passage omitted: VAT collection was also on the
agenda]
An IMF mission began its work in Ukraine on 20 July and is going to
complete it by 3 August. The mission plans to discuss the observance of
the conditions for the pre-emptive stand-by loan and hold consultations on
macroeconomic indicators and money supply under the so-called "Article 4".
On 29 March 2004 the IMF board of directors approved the allocation of
the pre-emptive stand-by loan for Ukraine worth 411m SDR, or 605m dollars.
The funds were allocated for 12 months (until 28 March 2005). The
pre-emptive stand-by programme envisages that funds are allocated for
Ukraine but are staying on IMF accounts and can be disbursed on Ukraine's
request in case of an emergency situation. (END) (ARTUIS)
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER NINE
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9. U.S. AMBASSADORS STEPHEN PIFER AND CARLOS PASCUAL
LETTER-TO-THE-EDITOR: by Stuart Ferency
The Action Ukraine Report, Washington, D.C., Monday, July 26, 2004
RE: Ukrainian President Kuchma Criticizes Former U.S.
Ambassadors Steven Pifer and Carlos Pascual For Biased Reporting
"I served two very different personalities holding a single office, that of
the Ambassador to Ukraine. It is then quite instructive that both
Ambassadors Pifer and Pascual reached the same conclusions about
President Kuchma.
It was a great privilege to serve these Ambassadors and a great honor for
the people of United States and Ukraine to have been served by these
fine men. These Ambassadors reached out to find the truth and the
truth is what they told. It might have been a lot easier for them to have
listened to what the Government of Ukraine sought to pass to the
Government of the United States as truth.
Ambassadors Pifer and Pascual served with the courage of their conviction.
They traveled Ukraine in search of her future, engaging the population with
attentive listening and then giving voice to a silenced population. They
then took what they heard to all the corridors of power where they had
opportunity to speak.
Rather than chastise our Ambassadors it would serve President Kuchma
and Ukraine better to study these men and to emulate their courage,
commitment, intellect and energy on behalf of her people. Two finer men
working diligently on behalf of Ukraine and her hopes and aspirations do
not exist. I, along with many Ukrainian citizens, salute them both." (END)
----------------------------------------------------------------------------
Stuart Ferency is a former senior advisor of the U.S.-Kharkiv
Partnership development program in Ukraine. He presently serves
as Senior Advisor, Maritime and Land Security Transportation Security
Administration, Department of Homeland Security, Washington, D.C.
=========================================================
ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER TEN
Send us names for the distribution list
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10. VIKTOR YUSHCHENKO: "THE UKRAINE CREATED BY THE
SITTING GOVERNMENT---THIS IS NOT MY UKRAINE"
We are talking about two different choices, two different Ukraines
Press service of Victor Yushchenko's central headquarters
Kyiv, Ukraine, Monday, July 26, 2004
"Several days ago, one of the journalists asked me: besides not having been
to jail, what makes you different from Victor Yanukovych? We are really
talking about two different choices today, about two different Ukraines.
The government's candidate, regardless of his name - Yanukovych, or
Medvedchuk, or Surkis, or Kuchma - is the person that personifies Ukraine
with the lowest salaries throughout the former Soviet Union, the lowest
pensions in Europe, with criminal government in which the law does not work,
neither do the freedom of speech and the freedom of choice.
This is one Ukraine, Ukraine created by the sitting government - this is not
my Ukraine," declared Victor Yushchenko in an interview to "Rush Hour"
on the 5th CHANNEL television last week.
"If we talk about the well-being, about fighting poverty, about lawfulness,
and freedom, about a country in which Kryvorizhstal would not have been
stolen, or UTEL [.], in which salaries, pensions, and stipends are the
highest among the CIS member-states at least, this is the other Ukraine. The
difference between the two Ukraines - different kind of government. One
government is working in accordance with the [laws of the criminals] and the
other upholds the law and works for the well-being of the nation," stressed
Victor Yushchenko.
Answering to whether he thought that the threat to his life increased with
the approaching of the elections, Yushchenko said: "I know one thing: this
government will not stop at anything because it knows [.] that the sitting
government will not be able to win presidential elections honestly under any
circumstances."
Yushchenko added that he knew that his life was in danger. "I am not worried
about it, however, it is not slowing me down because it is not my fate or
the fate of my children or my family that are at stake. Strictly speaking,
two Ukraines are competing now; the good is fighting the bad. The bad is not
kind or tender and it is not strong and this is what makes me believe that
my choice and the choice of my colleagues is the right one," stressed Victor
Yushchenko.
Commenting on Kuchma's saying that, "these elections will be the most
terrifying ones in the history of Ukraine, the most horrifying," the leader
of "Our Ukraine" coalition emphasized that that was said by the guarantor of
the Constitution, guarantor of order. "It is a complement to the government.
The government will do everything in order to ignore your exclusive right -
the right to choose," added Yushchenko.
He stressed that every citizen ought to remember that, "democracy is indeed
created, molded with millions of hands." (www.razom.org.ua)
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER ELEVEN
Now a major source of Ukrainian news for thousands around the world
=========================================================
11.IRISH LEADER QUESTIONS IMPORT OF UKRAINIAN GRAIN
Grain is not quality assured, no idea what chemical may have been used
Politics.ie., The Irish Politics Website, Belfast, Ireland, July 22, 2004
BELFAST, IRELAND - The Sinn Fein Spokesperson on Agriculture,
Martin Ferris TD, has written to a number of Ministers regarding the import
of grain from the Ukraine into ports in the Six Counties. Deputy Ferris was
responding to concerns on behalf of farmers on both sides of the border
regarding several aspects of this trade, and the potential affects which it
may be having.
Deputy Ferris said: "It would appear that massive quantities of grain are
coming into this country via Belfast and Warrenpoint from the Ukraine. This
grain is being imported by meal merchants and it is being bought by farmers
for use as feed. This is despite the fact that the grain is not quality
assured and therefore we have no idea as to what chemicals may have been
used during its production.
There is also the issue that the imported grain is having a depressing
effect on the prices which merchants will pay for home produced grain, while
they are not passing on the lower costs to the farmers who buy it as meal. I
am writing to the Ministers for Agriculture and to the Minister for Trade in
relation to how these imports may be impacting on farmers on this side of
the border, and in particular in relation to the quality of the grain
concerned." (END) (ARTUIS)
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http://www.politics.ie/modules.php?name=News&file=article&sid=5922
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER TWELVE
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12.UKRAINE'S FOOD PROCESSING INDUSTRY: LARGE INCREASE
IN OUTPUT DURING FIRST SIX MONTHS OF 2004
AgriMarket.Info, APK-Inform Information Agency, www.agrimarket.info
Dnipropetrovsk, Ukraine, Monday, July 26, 2004
KYIV -In the first half year of 2004 Ukraine's food processing industry
enterprises increase output of their main production items, a spokesman
for Agrarian Policy Ministry has informed.
Thus, production of crude vegoils increased 26 percent from the same
months of last year, production of margarines - increased 22 percent, of
bread and bakery products - 4 percent, of groats - 37 percent, of flour -
1 percent.
Output of sugar rose 24 percent from last year (a 2 percent increase was
registered in output of beet-origin sugar, while production of cane-origin
product rose 22 percent).
Meat processing plants produced 4.4 times more meat prefabricates, 33
and 21 percent more ready products and canned goods from pork and
veal respectively, 35 percent more sausages. However, production of
unprocessed meat decreased 3.9 percent.
Growth of production of liquid processed milk was 33 percent, of cream -
12 percent. The diary plants also produced 43 percent more dry milk and
cream, 28 percent more milk canned goods, 4 percent more sour milk
products, 25 percent more fatty cheeses. (END) (ARTUIS)
========================================================
ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER THIRTEEN
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========================================================
13. THOUSANDS OF NON-HATCHED BABY BIRDS DIE IN
DANUBE DELTA BECAUSE OF UKRAINE'S DANUBE-BLACK
SEA CANAL CONSTRUCTION, ECOLOGISTS SAY
Antonina Levko, Ukrainian News, Kyiv, Ukraine, Mon, July 26, 2004
KYIV - The International Socio-Ecological Union (ISEU) has made a
statement that dredging of the Danube-Black Sea shipping canal on Ptashyna
(the Bird) spit at the Danube delta has killed thousands of terns' chicken
in the eggs. Olha Zakharova, a representative of the ISEU, disclosed this to
Ukrainian News.
She could not give the exact number of the killed baby birds.Zakharova said
the noise of operating machinery is heard within a 5- to 7-kilometer
distance and has a deadly impact on the surrounding territory of the Danube
Biosphere Reserve.
"On the location of large colonies of Sandwich (there were more than 1,000
nests) and common terns (more than 120 nests) egg remains belonging to
these species were found. The nature of the damage testifies that no chicken
hatched out. The chicken were expected to come out of the eggs around July
20," Zakharova said.
The most possible case of the colony vanishing (even adult fowl left the
place) was overwhelming disturbance coming from dredging fleet and service
scooters working at the Bystre estuary.
A spokesperson for the state-run enterprise Delta Lotsman told Ukrainian
News that the first part of the construction project is 30% complete, and
the works are being carried out in accordance with all ecological
requirements.
As Ukrainian News earlier reported, the State Inspectorate for Protection
of the Black Sea in late June fined Delta Lotsman for breaching the
dredging operational procedures while constructing the Danube-Black Sea
canal through the Bystre estuary (Odesa region).
The project of the Danube-Black Sea canal was approved by the Cabinet of
Ministers of Ukraine. The Danube Biosphere Reserve has a concentration of
1,500 species of the world's flora and 3,600 of its fauna. 16 of them are on
the European Red List, and over 70 are included in the Ukrainian Red Book.
========================================================
ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER FOURTEEN
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========================================================
14. PRESIDENTIAL ADMINISTRATION SEES NO REASON TO
CONSIDER ABOLISHING OR SUSPENDING CONSTRUCTION
OF DANUBE-BLACK SEA CANAL
Oleksandr Sukov, Ukrainian News, Kyiv, Ukraine, Friday, July 23, 2004
KYIV- The Presidential Administration sees no reason to consider abolishing
or suspending construction of the Danube-Black Sea shipping canal. Vasyl
Baziv, the deputy head of the Presidential Administration and head of the
administration's analytical department, announced this to journalists.
"We have no reason to raise the issue of abolishing or suspending the
realization of this project," Baziv said. At the same time, he said that
Ukrainian specialists are considering UNESCO's conclusion that the option
that was selected for construction of the Danube-Black Sea shipping lane in
the Bystre Estuary is the most ecologically harmful of all the possible
construction options. "It is a serious organization that conducts a serious
analysis, and it will be studied by our specialists," Baziv said.
As Ukrainian News earlier reported, UNESCO, which has designated the
Danube biosphere reserve as part of its international network of Man and
Biosphere reserves, has expressed the belief that the option that was
selected for construction of the Danube-Black Sea shipping lane in the
Bystre Estuary is the most ecologically harmful of all the possible
construction options.
The Environmental Protection Ministry, the Ukrainian National Academy of
Sciences, and environmental organizations repeatedly demanded that the
Transport Ministry abandon the plan to build the Danube-Black Sea canal in
the Bystre estuary on the territory of the Danube biosphere reserve.
The Transport Ministry started construction of the Danube-Black Sea
deep-water shipping canal in the Bystre Estuary in May.
The Bystre estuary has been designated part of the international network of
the UNESCO's Man and Biosphere reserves and part of the waters and a
Ramsar Wetland of International Importance. Ukraine has been a member
of UNESCO since 1954. (END) (ARTUIS)
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER FIFTEEN
Ukrainian Information Website: http://www.ArtUkraine.com
=======================================================
15.POLISH DIRECT INVESTMENT IN UKRAINE AND RUSSIA SOARS
Over $100M last year, up three to four times on the previous year
Polish News Bulletin, Warsaw, Poland, Friday, Jul 23, 2004
WARSAW - Polish direct investment in Russia and Ukraine is likely to have
reached over $100m last year, up three to four times on the previous year,
according to Gazeta Wyborcza. Some 55 percent of the figure was invested
Ukraine, where 837 Polish-owned companies operate, and the remainder in
Russia, where some 390 Polish companies have operations. Companies,
diplomatic sources, and two countries' official institutions confirm that
Polish companies "have been boosting their presence in the region."
Last year, foreign direct investment doubled in both Russia and Ukraine, to
$6.8bn in Russia, and $1.3bn in Ukraine. Leading investors include US,
British, and German companies, as well as companies from Cyprus, which are
usually vehicles for domestic investors. Poland is the 11th largest foreign
investor in Ukraine, and is not shown in Russian statistics. Among Polish
companies carrying out manufacturing operations in Russia are the TZMO
dressing and diaper maker, and building materials group Atlas, whose plant
cost $10m to build. Late last year, soft drinks maker Hoop paid $11m for a
50-percent stake in Megapack, a Moscow-based soft drink and distillery
producer.
Listed clothing retailer LPP opened its first Reserved store in Moscow this
year. Leasing group Carcade, controlled by private investor Leszek
Czarnecki, has been rapidly expanding its leasing business in Russia. Among
companies planning projects in Russia are furniture board maker Pfleiderer
Grajewo (project value $100m) and furniture manufacturer Forte ($13m), which
plan to cooperate closely on the Russian market. Household appliance maker
Amica Wronki is also considering setting up a manufacturing plant in Russia.
In Ukraine, leading Polish investors include Forte, sitting furniture maker
Nowy Styl, and bicycle maker Romet, all of which have set up manufacturing
operations in the country to benefit from its low labour costs. Several
Polish companies have secured a strong position on the Ukrainian market,
including Bella (diapers, dressings), CanPack (drink cans), or InterGroclin
(car upholstery). Two leading Polish paint makers, Polifarb Cieszyn and
Sniezka, have also been expanding rapidly in Ukraine. Sniezka made a bit
profit in its first year of operation and is currently planning a new plant
in Ukraine, as well as in Russia, Belarus, and Moldova.
In the financial sector, Poland's Kredyt Bank recently sold its Ukrainian
operations to PKO BP. Companies that have recently unveiled investment
plans for Ukraine include Opoczno (ceramic tiles), Plast Box (plastics),
Zelmer (household appliances), and Cersanit (white goods). The rationale
behind the continuing expansion is clear. "Russia and Ukraine are huge and
highly absorptive markets, many times larger than the Polish one. The fact
that incomes there are lower than in Poland isn't really an obstacle," says
an executive at a Polish company investing in Ukraine.
Polish investors are also being attracted by Russia's and Ukraine's strong
economic growth, rapidly growing wages, strong production growth, falling
inflation, and tax reforms. Prices and margins are high, which means that
projects do not take long to break even. Lack of competition is another
attractive factor. "The Ukrainian and Russian markets are like the Polish
one in the early 90s. The presence of multinational corporations is not very
significant," says a stock market analyst.
"The Polish market is close to saturation point, so we have to find new
markets. Competition in the west is enormous, so we've decided to tackle
the Central and Eastern European emerging markets. By moving in before
western companies have done so, we're achieving a competitive advantage,"
says Dariusz Pachla, deputy chief executive at LPP, the clothing retailer
whose brands include Reserved and Cropp.
Another, more recent factor is the weakness of the dollar, which remains
the main currency for business settlements on the eastern markets. But the
huge opportunities are accompanied by risks: frequent regulatory changes,
over-regulation, red tape, problems with VAT refunds, and, above all,
widespread corruption.
"Corruption?" ironically asks an executive at a large Polish company. "We
pay only 95 different taxes and charges. Regulations are interpreted ad hoc
by tax officials."
Another executive remembers a case where building a fence around the
company's manufacturing plant required submitting a request of several
dozen pages and with as many official stamps. Following the Yukos affair,
investors are also afraid of political risk, fearing that in the worst case
their assets could be nationalised. "To invest in the east, you need
enormous expertise and a good knowledge of those markets," says Dariusz
Pachla at LPP. (END) (ARTUIS)
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER SIXTEEN
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16. PRESIDENT BUSH GREETING FOR SHEVCHENKO TRIBUTE
40th anniversary commemoration of the Taras Shevchenko monument
Saturday, June 26, 2004, Washington, D.C.
Message from President George Bush
The White House, Washington, D.C.
To the Organizing Committee, Taras Shevchenko Monument
40th Anniversary Commemoration, Washington, D.C. June, 2004
"I send greetings to those observing the 40th anniversary of the Taras
Shevchenko monument in Washington, D.C. The United States
appreciates our friendship with a free, democratic, and independent
Ukraine as we promote peace and prosperity around the world. We
are grateful for Ukrainian American contributions to our nation.
The free flow of ideas is a vital foundation of liberty. And on this
special occasion we honor the life and legacy of a Ukrainian national
hero, Taras Shevchenko. As an artist and poet, he dedicated himself
to a noble purpose and assumed great personal risk in the cause of
freedom.
As the United States works with Ukraine to spread freedom. I
appreciate your work to assist Ukraine in conducing free and fair
elections this October. I commend the Ukrainian Congress Committee
of America and others for your efforts to foster community price and
contribute to our nation's rich cultural heritage. Americans join you
in remembering the courage, vision and a of Taras Shevchenko.
Best wishes for a memorable event." (END) (ARTUIS)
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ACTION UKRAINE REPORT-04, No.125: ARTICLE NUMBER SEVENTEEN
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17. WHAT'S THE DEAL? "FOOTSTEPS OF THE COSSACKS"
The week's best travel bargains around the globe, by land, sea and air
Cruise along Ukraine's Dnieper River from Kyiv to the Black Sea
By Carol Sottili, TRAVEL section, The Washington Post
Washington, D.C., Sunday, July 25, 2004; Page P03
SEA --- A "Footsteps of the Cossacks" cruise along Ukraine's Dnieper
River from Kiev to the Black Sea and back has two-for-one pricing on
select sailings in August, September and October. The fare on Viking
River Cruises' 231-passenger Viking Lavrinenkov starts at $2,159 for
two. Ask for offer 002-59ECHO. Info: 877-66-VIKING,
www.vikingrivercruises.com/offers/59W.
The roots of all Russian history began in Ukraine when Vikings, called
Rus, arrived, conquered the local Slavic tribes, forayed into Byzantium
and returned with Christianity. The powerful Kievan state spread its
influence north into Russia and reigned supreme until Genghis Khan's
Golden Horde poured out of Asia, conquering all in its path. Then, the
legendary Cossacks once again established a powerful Ukrainian state.
Discover this sweeping history as you cruise along the great Dnieper
River from Kiev to the Black Sea, exploring the ancient cities and grand
monuments of this proud nation. (END) (ARTUIS)
----------------------------------------------------------------------------
Prices were verified and available on Thursday afternoon when the Travel
section went to press. However, deals sell out quickly and are not
guaranteed to be available. Restrictions such as day of travel, blackout
dates and advance-purchase requirements sometimes apply.
http://www.washingtonpost.com/wp-dyn/articles/A9479-2004Jul23.html
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"POWER TENDS TO CORRUPT,
ABSOLUTE POWER CORRUPTS ABSOLUTELY"
An observation that a person's sense of morality lessens as his or her
power increases. The statement was made by Lord Acton, British
historian of the late nineteenth and early twentieth centuries.
True then, true today, true always.
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